If you’re buying a home, you want things to be as stress free as possible. Luckily, there are a few things you can avoid to ensure your home loan process runs smoothly. Your lender will be performing an ongoing review of your financial profile until the day of settlement and will need to reconfirm your employment and credit profile 48 hours prior to settlement. So, Apex Home Loans recommends that you avoid these 4 things until AFTER settlement to ensure a smooth process.
Top 4 things that can hurt a borrower’s ability to qualify:
Opening or Applying for New Credit: Opening any new debt or allowing a potential creditor to run your credit report could alter your credit score and/or increase the amount of monthly debt obligations that you are expected to pay. It is also important to not significantly increase balances on existing credit cards or lines of credit, or authorize anyone to run your credit report. It is your responsibility to disclose to your lender any new or additional liabilities incurred up until and including the day of loan closing.
Changing Jobs: This initiates the need for more paperwork and may delay your closing if it is not addressed early enough. If you are actively searching for a new job, please discuss with your Loan Officer.
Transferring Funds from Account to Account: The mortgage process is one of verifying income (to qualify for the loan) and sufficient assets (for a down payment). All assets used for the transaction must be documented and sourced. This means any funds transferred into statements being used for loan application must be traced back to their source or origin. Transferring funds to and from accounts as a general process – or for settlement – will need to be documented with statements showing paper trail or cancelled checks.
Packing Away Your Checkbooks, Bank Statements etc: Bank statements, tax returns, and other important asset paperwork must be documented when qualifying for a loan. Your lender may need to ask for copies of important documents during the process and all the way through to settlement.
For more information on the home loan process and how to get started, visit boblucidoteam.com or call 410.465.6900 to speak to an agent today!
Courtesy of Apex Home Loans, Inc. NMLS #2884